Josh Hyatt, Plus Relocations Director of Business Development, explains that paying workers to live close to the office is becoming a trend in the Bay Area. Costs, particularly housing, continue to be a huge challenge for Bay Area employees, as does the crazy commute for those unable to afford housing closer to work.
As an employer in Silicon Valley, should this be a strategy to seriously consider when working to sign on high quality talent? Employees that live closer to work typically work late and stay with the company longer.
“The less time you’re spending on commuting, the more time you can spend focusing on work or focusing on your friends and family,” said Lissa Minkin, who leads human resources at Addepar, a wealth-management software company.In 2012, after executives noticed commutes were taking a toll on employees, the firm began offering workers $300 a month to live within one mile of the West Coast office or within 15 minutes to the firm’s Manhattan outpost. Those who live slightly further out are eligible for $150 a month. Employees can use the money, which is taxed, for paying rent or a mortgage.More than 40% of the company’s 172 employees live near work, Ms. Minkin says, and retention has increased over the past few years.